CITY OF CALIFORNIA CITY
CITY COUNCIL
Tuesday January 25, 2022
MEETING MINUTES
CLOSED SESSION @4:00 PM
REGULAR MEETING @ 6:00 PM
CLOSED SESSION 4:00PM
CALL TO ORDER
Mayor O'Laughlin called the meeting to order at 4:00PM.
ROLL CALL
City Clerk Sutton called roll:
Present: Councilmember Creighton, Councilmember Kulikoff, Councilmember Macedonio, Mayor Pro Tem Lessenevitch, Mayor O'Laughlin
Absent: None
ADOPT AGENDA
Motion to adopt the agenda. Councilmember Macedonio wants to change the order of the closed sessions:
1. CS3, 2. CS4, 3. CS1 and 4. CS2.
Motion by: Councilmember Creighton
Second by: Mayor Pro Tem Lessenevitch
All in favor.
Motion carried.
PUBLIC COMMENTS
Al Hutson spoke in regard to CS2, CS3, and CS4.
DJ Twohig spoke in regard to CS1 and CS3.
CLOSED SESSION
CS 1. CONFERENCE WITH LABOR NEGOTIATOR
Agency Designated Representative: Thomas
O'Connell Unrepresented Employee: Interim City
Manager
CS2. CONFERENCE WITH LEGAL COUNSEL-EXISTINGLITIGATION
(Paragraph(1)of subdivision(d) of Section54956.9)
Claim of Jose Barragan
CS 3. PUBLIC EMPLOYEE APPOINTMENT
Title: City Manager
CS 4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
City Attorney
REPORT OUT OF CLOSED SESSION
Council convened at 4:00pm for closed session items CS 1-4. On Items CS 1-3 discussion was had no final action was taken. CS 3 is continued to Thursday January 27 at 8:00AM. No agenda is required since it is within 5 days. With regards to item CS 4, Mayor O'Laughlin reported item was discussed, no final action was taken.
REGULAR MEETING 6:00
CALL TO ORDER
Mayor O'Laughlin called the meeting to order at 6:00PM.
PLEDGE OF ALLEGIANCE / INVOCATION
Councilmember Kulikoff led the Pledge of Allegiance. Pastor Mark Goodell from Desert Song Foursquare Church will give the invocation.
ROLL CALL
City Clerk Sutton called roll:
Present: Councilmember Creighton, Councilmember Kulikoff, Councilmember Macedonio, Mayor Pro Tem Lessenevitch, Mayor O' Laughlin
Absent: None
CITY CLERK REPORTS / LATE COMMUNICATIONS
None
DEPARTMENTAL REPORTS
• Airport
Councilmember Macedonio - Would like to see the square footage and the income from the square footage.
Mayor O' Laughlin - Fuel sales show revenue on the report but the financials show zero revenue. Finance Manager Kenny Cooper -There are some revenue items that are still being posted. • Building
• City Clerk
Councilmember Macedonio - Wants to confirm there are no outstanding public records requests.
Fire
Councilmember Macedonio - What's the difference between cargo container and a storage container Human Resources
Councilmember Macedonio - Are we signed up for the cyber security tips? Haven't seen any yet. On electric timekeeping, are all employees submitting time online? Interim City Manager Ambrose - All except one group are on electronic timekeeping and this is being resolve. Staff will sign the City Council up for cyber security tips.
Mayor O'Laughlin - Would like to see the personnel manual before its finalized. Interim City Manager Ambrose - If you have any suggestions let me know but it does have to be reviewed and negotiated with the union before it comes to Council.
• Police
Public Works
Councilmember Creighton - Why are projects on hold? Interim Public Works Director Meza - Will get clarification and report back.
• Treasurer
Mayor O'Laughlin - Would like to see the general fund cash separated out. Interim City Manager Ambrose - Staff is working on it.
PUBLIC COMMENT
• Al Hutson - Spoke in regards to seeing the water line replacement plans. • Lou Peralta - Commented on the financials being current.
Don Parris - Concerned about areas of the airport that look like junkyards. • Mayor O'Laughlin - Would like to see our city owned properties at the airport cleaned up as well.
CITY MANAGERS REPORT
Interim City Manager Ambrose - Working on Internal administrative matters and document preparation for litigation matters. Had to stop work on an easement that was not permitted and was a safety hazard. Staff is working with Kenny on budget items in preparation of the midyear budget. Mayor O'Laughlin - are we doing the midyear budget the end of February? Interim City Manager Ambrose - That is the plan. Mayor O' Laughlin - When will the Housing Authority come to the council regarding the management? We might need a special meeting so we can discuss sooner.
PRESENTATION
Chamber of Commerce - Alexia Svejda
CIVIC/COMMUNITY/ORGANIZATIONS ANNOUNCEMENTS
None
PUBLIC BUSINESS FROM THE FLOOR
Don Parris - Spoke about the drive by shooting he experienced this morning.
Ron Smith - Recognized Diane Perry and Kim from Animal Control's efforts to rescue a stray dog.
Shawn Bradley - Looking for an update regarding the Vicious Dog Review Board • DJ Twohig - Spoke in regards to the council having a strategic plan. • Al Hutson - Still waiting for a copy of the draft EIR. Interim City Manager Ambrose advised that the document being requested is in draft format and not ready for review by the public. • Lou Peralta - Commented on the drive by shooting Don Parris spoke of.
CONSENT CALENDAR
CC 1. Approve City Check Register dated 01/07/2021 through 01/20/2022.
CC 2. Approve Minutes from the July 27th 2021 and January 11th 2022 City Council Meetings.
CC 3. Approve APPROVAL FOR SCBA TOOL PURCHASE - Chief Kosick CC 4. Approve EMERGENCY MATERIALS PURCHASE- CHLORINE INJECTION PUMP - Interim Public Works Director Meza
CC 6. Approve RESOLUTION NO. 01-22-2906 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CALIFORNIA CITY APPROVING THE APPLICANT TO APPLY FOR, AND
RECEIVE GRANT FUNDS FOR THE STATE OF CALIFORNIA, DEPARTMENT OF PARKS AND RECREATION OFF-HIGHWAY VEHICLE GRANT FUNDS - OHV Manager Inge Elmes
PUBLIC COMMENT
None
Council and staff discussed the item.
Motion to approve CC1-CC4 and CC6 pulling CC5, CC7-CC9:
Motion by: Mayor Pro Tem Lessenevitch
Second by: Councilmember Creighton
AYES: Councilmember Creighton, Councilmember Kulikoff, Councilmember Macedonio, Mayor Pro Tem Lessenevitch, Mayor O'Laughlin
NOES: None
VOTE: 5 Yes Nays 0 Abstain Absent Motion Carried
CC 5. Approve EMERGENCY MATERIALS PURCHASE CONFINED SPACE ENTRY SAFETY EQUIPMENT - Interim Public Works Director Meza
DIRECTION
Item is being pulled and will be brought back to council at a later date.
CC 7. Approve PURCHASE OF NEW GRADER FOR THE OHV PROGRAM - OHV Manager Inge Elmes
PUBLIC COMMENT
Al Huston - Spoke in regards to using the public works grader in lieu of a purchase.
Council and staff discussed the item.
Motion to approve CC7:
Motion by: Councilmember Creighton
Second by: Councilmember Macedonio
AYES: Councilmember Creighton, Councilmember Kulikoff, Councilmember Macedonio, Mayor Pro Tem Lessenevitch, Mayor O'Laughlin
NOES: None
VOTE: 5 Yes 0 Nays 0 Abstain Absent Motion Carried
CC 8. Approve City of California City Employment Agreement Retaining Anne v.
Ambrose as Interim City Manager - City Attorney Bettenhausen
PUBLIC COMMENT
Al Huston - Spoke regarding keeping the current city manager, already a proven entity.
Council and staff discussed the item.
Motion to approve CC8:
Motion by: Councilmember Creighton
Second by: Mayor Pro Tem Lessenevitch
AYES: Councilmember Creighton, Councilmember Macedonio, Mayor Pro Tem Lessenevitch, Mayor O'Laughlin
NOES: Councilmember Kulikoff
VOTE: 0 Abstain 0 Absent Motion Carried
DIRECTION
Move CC9 behind NB2
NEW BUSINESS
NB 1. Discussion About the Tierra Del Sol Golf Course - Interim City Manager Ambrose
PUBLIC COMMENT
: Al Huston - Commented that the galf course's future should be a public vote.
David Brottlund - Stated that in recent times, James has done an outstanding job of trying to make things look better.
• JM Powers - Discussion regarding the Tierra Del Sol Golf Course (letter is attached below) Council and staff discussed the item.
DIRECTION
There needs to be a meeting of the Golf Course Committee. Mayor Pro Tem Lessenevitch will coordinate.
Follow up public meetings will be scheduled. Additionally, Council is seeking information on how the water is paid for at the golf course.
NB 2. Industrial Zone Development Standards -Contract Planner Paul Junker
PUBLIC COMMENT
• Brian Glidden - Spoke regarding the backlog of projects. We need more resources to catch up. • DJ Twohig - Asked the council to get underway the Permit Streamlining Act.
Council and staff discussed the item.
DIRECTION
Mayor O'Laughlin - 1st step is for Interwest to meet with their developer group. Need to get planning commission input and council direction.
Per Paul Junker, once regulations are agreed to, staff can immediately begin to implement Consensus voted not to require developer to install pavement in front of commercial projects in the M1 and M2 zones.
CC 9. Approve First Amendment to the Professional Services Agreement with Interwest and Authorize the City Manager to Execute the Amended Agreement - Interim City Manager Ambrose
PUBLIC COMMENT
• Al Huston - Commented we might not be offering a competitive salary for a Planning Director.
DJ Twohig - Spoke in regards to the Permit Streamlining Act.
Shawn Bradley - Is in favor of extending the agreement with Interwest. 2nd Call
DJ Twohig - Would like to see the applications get all the way to the SPR provisionally.
Brian Glidden - Stated we should deem applications complete if they followed all of the rules of the application at time submitted.
• George Mamayan - Spoke in regards to spec builders.
Council and staff discussed the item.
Motion to approve CC9 and giving the City Manager direction to bring back benchmarks and timelines:
Motion by: Councilmember Creighton
Second by: Mayor Pro Tem Lessenevitch
AYES: Councilmember Creighton, Councilmember Kulikoff, Councilmember Macedonio, Mayor Pro Tem Lessenevitch, Mayor O'Laughlin
NOES: None
VOTE: Yes 0 Nays 0 Abstain 0 Absent Motion Carried
NB 3. Creation of New Classifications and Approval of Salary Ranges - Planning and Community Development Director, Associate Planner, and Assistant Planner
PUBLIC COMMENT
• Al Hutson - Noted we might not be offering a competitive salary to attract good talent.
Council and staff discussed the item.
Motion to approve NB3:
Motion by: Councilmember Kulikoff
Second by: Mayor Pro Tem Lessenevitch
AYES: Councilmember Creighton, Councilmember Kulikoff, Councilmember Macedonio, Mayor Pro Tem Lessenevitch, Mayor O'Laughlin
NOES: None
VOTE: 5 Yes 0 Nays 0 Abstain 0 Absent Motion Carried
COUNCILMEMBER COMMENTS, AGENDA REQUESTS, AND AB1234
Councilmember Creighton - contract to execute the grant to help replace the aging fire engine is coming.
Also, the electric vehicle charging station is still coming. Hope to have an update soon. I would an update on the cleanup equipment purchase. We received the grant funds. And weeds are going to start popping and we need to kill them.
Councilmember Kulikoff - Would like an update on the water rate study by the next meeting Councilmember Macedonio - We need to think about revenue streams. I attended the New Mayors and Council Members Academy and want to look at what we can incorporate here from that training.
Mayor Pro Tem Lessenevitch - California City Power is going into the old gym. Can we get a presentation from them?
He would like to see payroll costs each month.
Mayor O'Laughlin - Farmers Market ribbon cutting. Also met with the Dusty Baker Group. We had a very interesting meeting. They have a partner who was just awarded a $1.3 million workforce development grant and they're going to be training about 63 students in the trade to be able to go out and build houses and then they're good they have I think a small complex of six houses that once they've gone through their training they go out and build six houses as part of their on the job training. I also attended the New Mayors and Council Members Academy. And we had a meeting of the Mayor's Pastoral Council. The pastors are working together to create a 501C foundation for the city. Lastly, I need reliance on the financials, when is that ever going to get done? Interim City Manager Ambrose-Staff are working on it. He is trying to get caught up on everything.
Price and Paige is working on the prior years. They are going to be here in a couple of weeks to do the audit so staff will be focused on doing the audit prep. It is just one person in finance and the work that is being done by consultants is not the activities of the finance department. And our intention is to have our mid-year review in February.
Waste Management Interim City Manager Ambrose - I spoke to Josh and the city does have the option of extending the agreement. I will talk to them on Tuesday. I just want to know how to proceed if it's the council's desire to extend. I will be working with Josh. If it is imperative we meet on the 31st, we will reach out to you.
Meeting ended at 10:07PM and will continue on Thursday at 8:00AM.
CLOSED SESSION RESUMED AT 8:00AM 1/27/2022
REPORT OUT OF CLOSED SESSION
Council convened in closed session for consideration of item CS3. Discussion was had but no final action was taken.
ADJOURNMENT
Motion to Adjourn: 1sT Councilmember Creighton 2ND Mayor Pro Tem Lessenevitch. Meeting adjourned at 08:31AM on January 27, 2022
PASSED, APPROVED, AND ADOPTED this 25t and 27t day of January 2022. spin baud
seanie O'Laughtin, Mayor
Laurie Syron Siy Clerk
City Clerk Sutton January 22, 2022
California City Hall, 21000 Hacienda Blvd
California City, CA 93505-2259
City Clerk Sutton,
Re: January 25, 2022 City Council Agenda NB 1 "Discussion About the Tierra Del Sol Golf Course"
Include this letter into the record for the upcoming city council meeting and distribute to council members, interim city manager, and Tierra Del Sol golf course management; place this topic on the agenda to discuss at the next city council meeting.
In NB 1, the City Council is discussing the future of the Tierra Des Sol golf course.
Crucial to that dialogue is understanding the level of golfing activity (rounds count) and the true costs of irrigation. That includes potable water costs for tees and greens and recycled water costs for fairways. The City must comply with Proposition 218 [CA Constitution Article 13D Section 6(b)] regarding cost of service and proportionality.
In Nov 2014 over 7 years ago, the Council-approved Water & Sewer Rate Study, page 12 (attached), stated, "BWA recommends that the golf courses should pay all of the costs related to drawing water out of the lake and subsequent irrigation. Electricity for pumping water onto the golf course should be paid by the golf course, not wastewater rate payers. These recommendations are consistent with Proposition 218, which requires customers pay for their proportional cost of service." A copy of page 12 is attached to this letter. This statement addressed Tierra Del Sol use of recycled water. For the past 7 years successive city councils have ignored the true cost of recycled water irrigation for Tierra Del Sol. The City Council has purposefully ignored establishing recycled water rates despite requirements by Prop 218 and AB 2403 since July 2014.
The following table reveals General Fund or Tierra Del Sol (TDS) payments for potable water of only tees and greens irrigation. It is vital for this City Council and the Interim City Manager to understand that the City was required by Prop 218 to pay for municipal potable water use beginning Nov 1996. However, the City failed to pay for any municipal potable water use until beginning Nov 2014 and then only intermittently as shown in the table below and on the next page.
Timeframe What Actually Happened
Nov 1996 to Oct City did not pay for municipal use (including TDS) of potable water or 2014 sewer, instead residential and commercial ratepayers were forced to pay for municipal potable water and sewer use in violation of Prop 218.
Beginning July 2014 City was required by AB 2403 to pay for municipal recycled water use, but instead forced sewer ratepayers to cover costs. 1 Timeframe What Actually Happened (see Notes 1 & 2)
Nov 2014 to June Intermittent payments (less than 75% paid for potable water by the 2015 General Fund for TDS potable water use on tees and greens.
Recycled water costs for TDS fairway irrigation borne by all other sewer ratepayers.
July 2015 to June Intermittent payments (less than 60% paid for potable water by General 2016 Fund for TDS potable water use on tees and greens.
Recycled water costs for TDS fairway irrigation borne by all other sewer ratepayers.
July 2016 to June Potable water payment for TDS tees and greens at $433,977 with two 2017 months of payments missing, amount shown paid by General Fund.
Recycled water costs for TDS fairway irrigation borne by all other sewer ratepayers.
July 2017 to June Potable water payment for TDS tees and greens at $757,394 with one 2018 month of payments missing, amount shown paid by General Fund.
Recycled water costs for TDS fairway irrigation borne by all other sewer ratepayers.
July 2018 to June Potable water (and sewer) payment for TDS tees and greens at 2019 $727,671 water + $237 sewer (Restaurant & Pro Shop) charged to TDS Fund 40, actually paid by the General Fund.
Recycled water costs for TDS fairway irrigation borne by all other sewer ratepayers.
July 2019 to June Potable water (and sewer) payment for TDS tees and greens at 2020 $561,991 water + $403 sewer (Restaurant & Pro Shop) charged to TDS Fund 40, actually paid by General Fund.
Recycled water costs for TDS fairway irrigation borne by all other sewer ratepayers.
July 2020 to June Potable water (and sewer) payment for TDS tees and greens at 2021 $268,055 water + $347 sewer (Restaurant & Pro Shop) charged to TDS Fund 40, actually paid by the General Fund.
Public Works established a new irrigation (flat) rate for TDS without a formal cost of service Water Rate Study. This new irrigation rate was (and is) non-compliant with Prop 218 (violates proportionality and cost of service requirements) because it waived for TDS monthly minimum charges of Water Department overhead costs, applied AVEK wholesale potable water rates which are not representative of Cal City retail or irrigation potable water rates, and measurement of irrigation water consumption used acre- feet instead of hundreds-cubic feet measurement which can significantly underreport potable water consumption because amounts are rounded..
Recycled water costs for TDS fairway irrigation borne by all other sewer ratepayers.
NOTES: 1. Source of municipal potable water and sewer payments (including TDS and Par 3 golf courses) come from the Finance Dept. monthly reports presented at City Council meetings. The Finance Dept. reports were intermittent (many months missing and many municipal accounts missing) and reporting stopped around February 2021.
2. The Par 3 golf course used municipal potable water for tees, greens, and fairway irrigation. The city did not pay for Par 3 irrigation costs until beginning Nov 2014 then after only intermittently until Par 3 closed in early 2018. 2 TDS is charged for three 4-inch meters, two 6-inch meters, and two 1-inch meters. The meter equivalent is 159 for these seven meters. The monthly minimum charge for these seven meters was $100,800 per year ($8,400/month) until Public Works stopped charging TDS in August 2020. Prop 218 proportionality requirements [CA Constitution Article 13D Section 6 (b) (3)] intend to prevent one customer class from subsidizing another customer class. Neither residential nor commercial water customers should be forced to pay for overhead costs of TDS potable water irrigation. Under the new irrigation rates, TDS pays no water overhead costs which would be $100,800 per year. That cost is borne by all other potable water ratepayers.
Cal City charges $1,742 per acre-feet for potable water to its customers for normal potable water rates. However, Public Works charges TDS the AVEK municipal wholesale cost of $665 per acre-feet (now), in 2020 it was $642 per acre-feet for treated (potable) water. The potable water used on TDS comes mainly from local wells pumped (not AVEK) through the city's water collection and distribution system and is used on TDS tees and greens.
The Kern County 2014/15 Grand Jury Report cited recommendations for the City to close one golf course (Par 3 was closed 3 years later) and to use desert landscaping on the remaining golf course. At the time Mr. Weil, City Manager, responded to the Grand Jury that he and Public Works were planning to explore xeriscaping of the golf courses. That did not happen.
TDS fees and charges (in the Master Fee Schedule) have intentionally avoided increases at the City Councils' direction. This has also contributed significantly to TDS indebtedness.
Public (municipal) golf course closures have increased, few are managed well enough to turn a profit or even break-even, financially. The utilization (rounds count) of TDS is extremely low due to a lack of clientele, both local and out of town. The large cost burden to subsidize Tierra Del Sol with General Fund cash is not sustainable despite city platitude claims such as "important community amenity" or "diamond in the rough" - TDS is not an essential city service.
The State Auditor's Local High Risk Reports on municipalities with indebted public golf courses provide recommendations and reminds those cities that public golf courses are NOT an essential service.
Long-term, California City has been in defiance of requirements of Prop 218 and also AB 2403, in particular, to prop up two (and now one expensive 172-acre) 18-hole golf course. The succession of City Councils has been unwilling to raise golfing rates to cover TDS' ballooning deficit spending. There is no public access to Golf Committee meeting minutes since the city took over management of TDS, so a lack of transparency continues to prevail.
The General Fund heavy subsidy of Tierra Del Sol will have a direct, negative impact on the residents and property owners by inflating any future public safety parcel tax to offset the substantial operational expenses of the golf course.
Howers
3 Atch: 1) 2014 Water & Sewer Rate Study excerpt page
2) Public Records Request, dated Jan 22, 2022, Monthly Golf Rounds Played on TDS from Jan to Dec 2021.
3) Public Records Request dated Jan 23, 2022, Acre-Feet of Recycled Water Consumed by TDS for Fiscal Years 2018/19 thru 2020/21 and half year 2021/22 Cc: City Council, Interim City Manager, MDN, QK Inc, All Stakeholders. 3 City of California City
Water and Sewer Rate Study
WELCOME 70
CALIFORNTA
www.CaliforalaCio.Com
November 2014
BARTLE WELLS ASSOCIATES
Independent Public Finance Advisors
1889 Alcatraz Avenue
Berkeley CA 94703
Tel. 510/653-3399
RCNLD stands for "Replacement Cost New Less Depreciation." MGD stands for "million gallons per day." GPD stands for "gallons per day."
Disposal of Treated Wastewater Effluent
The City's wastewater treatment plant provides tertiary treatment to sewage flows and the treated effluent is disposed of into a nearby lake for percolation/reuse. The cost of wastewater treatment and disposal to the lake is funded by the sewer enterprise.
Two golf courses operate within California City-"Tierra Del Sol" and "Par 3". The golf courses pump water out of the lake to use for irrigation on the golf course fairways while the greens and tee boxes are irrigated separately with potable water from the City's water system.
BWA recommends that the golf courses should pay all of the costs related to drawing water out of the lake and subsequent irrigation. Electricity for pumping water onto the golf course should be paid by the golf course, not wastewater rate payers. These recommendations are consistent with Proposition 218, which requires customers pay for their proportional cost of service.
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